SNCI mentioned in Ind. Inv. web site yesterday.
individualinvestor.com
FYI, Jim
Sonic Innovations (NASDAQ: SNCI) might have the solution. It has invented a microchip that mimics the cochlea, which is the ear's primary hearing tool.
According to The Carnegie Group, approximately 90% of all permanent hearing impairments are characterized as sensorineural losses, and the remaining 10% are characterized as conductive losses. Conductive losses, which are caused by structural imperfections in the ear, can generally be corrected by surgery. Sensorineural losses, which stem from deterioration of or damage to the cochlea, typically cannot be improved by medical or surgical means.
Sonic is going after the sensorineural market.
Its microchip hearing aid is called the CONFORMA. It consists of two parts: a tiny core about the size of a pencil eraser that contains the product's electronics, and a soft disposable tip that conforms quickly and precisely to the shape of the wearer's ear canal. This compressible foam tip eliminates the need to custom mold a hard plastic shell to fit the wearer's ear canal, both increasing comfort for the wearer and enabling a custom fit in a single visit.
The CONFORMA is a programmable completely-in-the-canal model, and it adjusts to the ear canal whenever the user chews or yawns. It is also the smallest hearing aid available. This small size allows it to be placed deep in the ear canal, virtually eliminating the stigma of wearing a hearing aid.
Sonic Innovations is just out of the box. It had $12 million in sales last quarter, but posted operating and net losses. I do not expect the company to turn profitable until next year. The stock is trading around $13, right around the price of its IPO. |
